(from Housingwire.com)
On Monday, FHFA Director Bill Pulte tweeted at Fed Chair Jerome Powell, basically saying, “Cut the rates already—Trump beat inflation, and housing needs help.” This isn’t just a spicy tweet, it’s part of a growing push from folks close to the Trump White House to get mortgage rates down.
Why? First, high rates are blocking plans to take Fannie Mae and Freddie Mac out of government control (aka conservatorship) (aka we’ll talk about this later in this newsletter).
Second, housing construction has slowed to levels we haven’t seen since COVID, which is a major red flag for the economy.
Third, with a trade war heating up again, Trump’s team believes fighting it will be way easier with lower rates, like they had during COVID when housing stayed strong despite crazy lumber prices. Treasury Secretary Scott Bessent even hinted that if rates stay high, they’ll hold off on GSE reform altogether. Lower rates could be the unlock to fixing multiple economic headaches. But for now, it’s all talk, tweets, and theories.
Read more here
Fannie & Freddie Might Actually Make Things Public
(from CBSnews.com)
Hang on. Hold up. Wait a minute. So FHFA Director Bill Pulte was pushing for lower rates and there might be something brewing with Freddie Mac and Fannie Mae?
Yeah… well, now the administration says there’s serious consideration in taking them public. Like, removing them from federal control after 17 years in government hands.
If you’re wondering why that matters, here’s the deal: these two companies back a huge chunk of the U.S. mortgage market, and letting them loose could shake up how home loans work (and how much they cost). Wall Street investor and Trump bro Bill Ackman is all-in, calling it the “biggest deal in history” and saying it could net the government $300 billion, cue dramatic movie trailer voice.
Critics, like Senator Elizabeth Warren, think this move could reward hedge funds and raise mortgage rates for everyday buyers already struggling to afford homes. Pulte himself has said that any move like this needs to be “extremely thoughtful” to avoid screwing up the entire housing market. Basically, it’s a high-stakes poker game: Trump wants the deal, Ackman wants the payday, and homeowners just want to not pay more.
Stay tuned, this could be one of the biggest housing stories of 2025.
Read more here
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